Photo by: Bloombeg
PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has welcomed the conclusion of negotiations on a Trans-Pacific Partnership (TPP) agreement, saying it represented a major achievement in Australian trade policy.
The 12 TPP countries, which include Canada, the US, Japan, Chile, New Zealand and Peru, make up about 40% of global gross domestic product and, last year, one-third of Australia's total goods and services exports, about A$109-billion, were sent to TPP countries.
Trade and Investment Minister Andrew Robb said this week that the TPP writes regional trade rules which would drive Australia's integration in the region and underpin the country’s prosperity.
“It builds on Australia's successes in concluding trade agreements with China, Japan and Korea and delivers more again. As a regional trade agreement, the TPP creates benefits for consumers and businesses beyond those that can be achieved under bilateral free trade agreements (FTAs), helping to create jobs and a stronger Australian economy.”
The TPP would eliminate over 98% of tariffs in the TPP region, removing import taxes on around A$9-billion of Australian trade and would drive significant growth in Australia’s services industries.
For Australian manufacturers, the TPP creates new market access opportunities for exporters by eliminating or significantly reducing tariffs on iron and steel products, ships, pharmaceuticals, machinery, paper and automotive parts, while all remaining tariffs in TPP countries on Australian minerals, petroleum and liquefied natural gas exports would also be eliminated.
MCA CEO Brendan Pearson said the TPP would boost opportunities for Australia’s A$175-billion minerals and energy export sector, as well as open up new markets for Australia’s fast growing mining technology and services sector.
“The minerals industry congratulates Minister Robb and his negotiating team for their singular pursuit of more opportunities for Australia’s exporters, including minerals and energy exports, as well as equipment, technology and services providers.
“The agreement will remove or reduce tariffs on minerals and energy exports and mining equipment and reduce restrictions on provision of consulting, research and development, engineering, environmental and technical services.
"The changes to the investment thresholds will open Australia to new sources of capital, which has been essential to the nation’s economic growth and development.”
Pearson said the change to the investment thresholds in Canada and greater transparency and stability in tax and investment rules in Vietnam and Malaysia would also boost investor confidence.
“The TPP is the single biggest global trade deal of the past 20 years, reaching almost half of global trade and 70% of Australia’s exports and imports, and will provide a competitive advantage to its members through lower barriers to trade.
“It will stand as a challenge to the rest of the world to continue pursuing reform of global trade.”